To ensure reliability, both the System Operator (NYISO) and the Load Serving Entity (Utility) need to maintain generation and distribution capacity to meet their peak demand obligations. These costs are passed on to customers via demand-based charges, whether assessed as contribution to system coincident peak (ICAP tag) or individual monthly non-coincident peak (Demand Charge). In ConEd, the Commercial System Relief Program (CSRP) aims to reduce peak demand at the network level by calling on customers to reduce energy use during their respective assigned call windows. Four energy storage systems were installed in four different commercial buildings in Westchester, New York – one of the state’s first Virtual Power Plant demonstration projects. The project reduces electricity costs from ICAP and Demand Charges and participates in NYISO and ConEd demand response programs. By participating in the CSRP program, the host earns incremental demand response revenue and the utility benefits from system relief.
